MINISTER of Finance II Amir Hamzah Azizan said the government has agreed to exempt the imposition of capital gains tax (CGT) as well as taxes on foreign sourced income (FSI) on unit trusts. 

He said the exemption on CGT would run from January 1, 2024 until December 31, 2028 while the exemption on FSI would take effect from January 1, 2024 until December 31, 2026. 

Amir Hamzah said the government would continue to make capital market investments in Malaysia rakyat-friendly with the introduction of CGT in Budget 2024. 

“The scope for CGT focused on gains from the disposal of unlisted shares by companies. Disposals of listed shares and disposals by individuals are not subject to CGT. 

“Through the various engagements we’ve had on this matter, it has come to our attention that one unintended area impacted by CGT is unit trusts, given that more than 90% of unit trust holders are individuals,” he said during the launch of Bursa Malaysia as a multi-asset exchange today.  

Amir Hamzah stressed that the government is still projecting Malaysia’s economy to grow by 4%-5% in 2024 despite external volatility posing downside risks. 

“This is underpinned by the government’s diligent efforts to bolster domestic demand and generate more investments into the country,” he added. 

The minister noted that the reforms initiated by the Madani government were yielding results. 

“The Madani Economy framework has provided a clear roadmap to propel Malaysia to a higher economic value chain and breathed confidence into global investors. 

“In the coming months and years, the government will see through the execution of these policy documents and ensure that Madani Economy’s vision will become a reality,” he said. – Bernama, January 16, 2024.